eToro vs Stake: Which is Best

eToro vs StakeeToro and Stake both offer zero commission brokerage for Australians.  This means you can invest in US shares like Apple, Tesla, Amazon and more without having to paying any commissions.

But which is better eToro vs stake?  I’ve used both platforms and here is what I like about both:

What I like about eToro

Here is what I like about buying shares on eToro:

  • Copy Trading – eToro has a unique copy trading feature that lets you automatically copy the trades of experienced traders.
  • Social Trading – You can see what shares people are buying and why they are buying them.  eToro is a bit like if you combined Facebook with a broker.
  • Great interface – eToro has a well designed and easy to use interface.  I’ve found it to be more reliable than Stake which sometimes lags (I’m sure Stake will keep improving this)
  • More Markets – etoro offers more than just share trading (although I would recommend new investors to stick with shares, forex and commodities can be riskier).
  • No management fees – There are no management fees on eToro.  You can buy and hold a stock and you won’t be charged or penalised for making no additional trades (like IG does).
  • PayPal Deposit – If you use PayPal you can deposit instantly into eToro from PayPal.  I get paid from survey sites through PayPal so this works out well for me.

You can find out more about investing on eToro here

What I like about Stake

And here is why I like investing through Stake:

  • Huge range of Shares – Stake lists more U.S shares than eToro does.   They have a huge range of ETFs as well that eToro currently doesn’t offer.
  • Invest with just $10 at a time – On stake you can buy a fractional share with as little as $10.  On eToro the minimum trade size is $50.  So if you have less capital you can diversify more using Stake.
  • Deposit via POLi – POLi is an Australian payment option.  It’s great for depositing instantly using a bank account.
  • No management fees – you can buy and hold stocks for as long as you want.  Great for building a long term nest egg.

p.s – if you’re thinking about joining Stake, you can a free stock worth up to $100+ using this Stake referral code.

What features do Stake and eToro Both Have

Here are the two killer features that both eToro and Stake have:

  • Fractional Shares – on both eToro and Stake you can invest in just a fraction of a share.  You don’t need to buy a whole share.  You can invest any dollar amount.  This is great for dollar cost averaging.
  • Zero brokerage trading – you won’t pay any brokerage fees on either Stake or eToro.  This means you won’t pay a fee to buy or a fee to sell.

eToro vs Stake: The Fees

Both eToro and Stake make money when you deposit AUD and they convert it into USD so you can buy US shares.    This FX fee works out to be way less than what investors would be paying through Commsec and other brokers (where you still pay FX fees + $19 brokerage fee).

  • eToro FX Fee: 50 Pips – if you deposit using a WIRE transfer you’ll be charged a FX rate which is 50 pips from the spot rate.
  • Stake FX Fee: 75 Pips – if you deposit using POLi on Stake you’ll be charged a FX rate which is 75 pips from the spot rate.

Both of these fees are very small and won’t be noticeable for most traders.  It should be noted that both platforms will charge a slighter higher FX conversion fee if you deposit using a credit card or PayPal.  eToro charges a $5 fee to cover withdrawals.  Stake doesn’t charge anything.

Which platform am I using…

I use both platforms!  On Stake I’m building a dividend/growth portfolio (made up of a mixture of growth ETFs and dividend ETFs).  Some of these ETFs aren’t available through eToro.  I also like being able to dollar cost average by investing small (~$25) daily amounts.

I use eToro for trading as opposed to long term investing.  While you can buy and hold a stock on eToro for as long as you want (there are no management fees), I am using it more for shorter term day trading.    I also buy and hold crypto through eToro.

Both platforms have very similar options.  It is possible to sign up to both for free and you can even trade on eToro using virtual funds to try it out.

Personally I don’t think one platforms is “better” than the other.  The both offer the same zero commission trading.  So it really comes down to if you want to use copy trading, or access certain ETFs.

You can find out more about eToro here or find out more about Stake here.

This post is for educational purposes and should not be considered as investment advice. This post is based on individual experience and journalistic research.

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